BBC News Online: Business

Wrangler jobs to go

Wrangler will survive - but lesser brands are on the way out

The company said that its speciality workwear, swimwear and knitwear lines would be phased out.

VF will take a charge of about $280-$320m this year, but should save about $115m a year after that.

Tough in textiles

The restructuring takes VF from its roots as a general textile manufacturer to becoming a brand-centred company, in response to the pressure on the US fabric business from cheaper foreign imports.

The pressure was thrown into sharp relief by the announcement today that Burlington Industries, which specialises largely in fabrics for furnishings, filed for protection from its creditors.

The company said that it was overburdened with $1.1bn in debt, and blamed the US government for its disdain for the difficulties domestic producers had competing with imports, citing the fact that textile imports had grown at five times the rate of consumption since 1999.

"A key factor that led Burlington to take these steps is the US government's history of using the textile industry as a bargaining chip in international relations," said the company's chief executive, George Henderson.

"The results have been devastating for the industry, leading to job losses, plant closings and liquidations."

The company still has $60m in cash, and a $190m credit line from JP Morgan Chase.

That should allow uninterrupted service while it restructures, Mr Henderson said.